Friday, May 15, 2009

SEC Proposes Tougher Rules on Investment Advisers

In the wake of the Madoff scandal and other pyramid schemes, the SEC yesterday proposed rule amendments requiring investment advisers who maintain custody of their clients' assets to subject themselves to surprise exams by the SEC.

The full text of the proposed amendments is expected to be published shortly. Once published, the proposal will be subject to a 60-day public comment period.